Nordic real estate private equity house Sveafastigheter has made the first acquisition for its Fund III with the purchase of Accor Hotels Sweden, the owner of 14 hotel properties and 18 hotel operations in Sweden.
Nordic real estate private equity house Sveafastigheter has made the first acquisition for its Fund III with the purchase of Accor Hotels Sweden, the owner of 14 hotel properties and 18 hotel operations in Sweden.
As part of the deal, hotel group Accor has signed a master franchise agreement with Sveafastigheter for the Ibis brand in Sweden. The acquisition is carried out through a joint venture together with hotel asset manager Midstar and the Cologne-based hotel operating partner Event Holding as minority owners. Event Holding will manage the hotel operations under a management agreement.
The portfolio includes 1,769 rooms across Sweden from Sundsvall in the north to Malmö in the south. The hotels located in or around Stockholm, Gothenburg and Malmö generate 75% of the revenue. The portfolio is operated under the Ibis brand (14) and under the Formule 1 brand (4) and is expected to undergo an extensive renovation programme.
'This portfolio has strong potential and through control over the hotel operations as well as the real estate we can at our own discretion implement a strategy of upgrading and increasing efficiency to the benefit of hotel guests and owners alike,' said Simon de Château, CEO at Sveafastigheter. 'The budget segment is underdeveloped in Sweden. Consequently many new initiatives will be seen, and we are excited to be part of this development.'
In October this year Sveafastigheter had the second closing for its new fund, Sveafastigheter Fund III. Including previous commitments, the fund received funds totalling over EUR 120 mln.